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Can Tho to shut down delayed FDI projects
Can Tho City will revoke the licenses of foreign-invested projects that have been delayed for a long time, the municipal administration has announced.
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| A corner of the Tra Noc Industrial Zone in Can Tho City. Delayed FDI projects in the city will have their licences revoked this year. |
A Viet Nam Investment Review (VIR) report on FDI projects in the Mekong City quoted Vo Thanh Thong, Deputy Chairman of Can Tho City People's Committee, as saying: "The city is determined to revoke the licenses of FDI projects which were delayed because the investors failed to implement them or because of insufficient financial capacity."
Thong said the revoked projects will be transferred to other investors who have sufficient capacity to implement them.
The city authority has also asked the Can Tho Department of Planning and Investment to inspect the implementation of FDI projects and propose measures to help their investors remove any difficulties they are encountering in completing their paperwork, so as to speed up implementation.
A typical reason for the stalling of FDI projects in Can Tho City are differences in opinion between the foreign and local partners in the project, leading to delays in capital contribution as well as construction of these projects, said Thong.
Five FDI projects in the city, with combined registered capital of nearly US$542 million, have suspended operations.
These include the Can Tho Refinery project which was licensed in 2008. The foreign partner has withdrawn from the project due to difficulties caused by the global economic downturn, leaving the local partner unable to carry out the project alone.
FDI licences in 2011
Last year, Can Tho granted licenses to six FDI projects located outside the city's industrial parks, with a total registered capital of over $138.2 million, a 5.4-fold increase over 2010.
In addition, the city licensed a capital expansion of $78.7 million for three FDI projects under operation in the city.
By the end of 2011, Can Tho had 53 FDI projects with a total registered capital of $956.6 million.
However, capital disbursement for FDI projects in Can Tho City was very low, just $8.38 million in 2011. By the end of last year, accumulative disbursements of capital for FDI projects in the city was $195.2 million, accounting for 20.4 per cent of the total registered capital for all FDI projects in the Cuu Long (Mekong) Delta city.
The city now has 48 valid FDI projects with a combined registered capital of nearly $415 million, for which a total of $191.8 million, or 46.2 per cent, has been disbursed, said Thong.
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